Cost of fuel borne by service recipient could not be subjected to GST for GTA service

New Jai Hind transport Service Vs Union of India and others (Uttarakhand High Court)

Conclusion: Cost of fuel borne by service recipient and this cost of this fuel could not be subjected to charge of GST by adding the value of free diesel in the transaction value of GTA service done by assessee. Hence, value of free fuel could not be added to value of taxable supply under Section 15(1) and Section 15(2)(b) of the CGST Act, 2017.

Held: Assessee was a sole proprietor of M/s New Jai Hind Transport Service firm and was duly registered under the Uttarakhand Goods and Service Tax Act, 2017. The issue arose for consideration was whether the value of free diesel filled by service recipient under the accepted terms of contractual agreement in the fleet(s) placed by GTA service provider would subject to the charge of GST by adding this free value diesel in the value of GTA service, under the Central Goods and Services Tax Act, 2017 & Uttarakhand Goods and Service Tax Act, 2017? It was held that cost of fuel was to be borne by the service recipient and this cost of this fuel could not be subjected to charge of GST by adding the value of free diesel in the transaction value of GTA service done by assessee. Hence, value of free fuel could not be added to value of taxable supply under Section 15(1) and Section 15(2)(b) of the CGST Act, 2017.